Co Ownership Contracts made easy

FRACTIONAL OWNERSHIP AGREEMENT

How you can 'co-own' a boat, aircraft or other luxury item by drafting and using the right legal fractional ownership agreement.

The dream of buying your own aircraft, fishing boat, yacht, powerboat or expensive luxury item is something many people share. Often these things are either too expensive for a single person to buy, or buyers believe they will get more use out of the properties if they come together and buy them as  co-owners. It is possible to make a suitable legal agreement which details either the use or the expenses (or both) of owning and running the item bought. If fractional ownership of a boat or aircraft is something you wish to aim for, you will first have to draft the right legal contract. Here is what you need to know:

WHAT IS A FRACTIONAL OWNERSHIP AGREEMENT?
A Fractional Ownership Agreement is simply a written statement describing the terms and conditions of buying and using your boat, aircraft or luxury item .The agreement clearly states in writing what the rights, responsibilities and privileges of the various co-owners will be. As an example it may be a time-share type agreement for a boat or a list of times when a group of co-owners have the right to use a glider or aircraft.

HOW MANY PEOPLE CAN ENTER A FRACTIONAL OWNERSHIP AGREEMENT?
As many as agree to do so. Co-Ownership can include multiple parties. It’s common for groups of families or small business to agree to share rights to these properties, and divide the share of costs or expenses suitably. Of course, there will be practical limits to any use, but as long as everyone agrees to the terms and conditions, the fractional ownership agreements can include as many people as you wish.

WHAT ABOUT REPAIRS AND MAINTENANCE?
The co-owners can decide among themselves who is responsible for repairs and maintenance. Whether one person supervises all needed maintenance and sends a bill to the rest, or if each co-owner agrees to take turns, however the parties wish to share responsibility to any area of the ownership details is up to them.

WHAT DO I NEED TO INCLUDE IN MY FRACTIONAL OWNERSHIP AGREEMENT?
Most often, Fractional Ownership Agreements will include conditions that cover all eventualities. The method of funding, cost sharing, transfer of ownership interest and terms of use are all needed when completing the agreement. These documents should be clear and concise, yet detailed enough to include all information needed to make it clear to all parties involved what their responsibilities and privileges are.

The choice to enter a Fractional Ownership Agreement for a boat, aircraft or other expensive luxury item is a common decision many people make when they wish to buy these kinds of properties. The most important role of these documents is to make it clear to each owner or potential co-owner what they can and cannot do with their share of the property. A well drafted Legal Fractional Ownership Agreement will allow for everyone to enjoy their new purchase, while a poorly drafted document, or even worse, no agreement at all, will lead to endless problems.

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